Hedge funds are intensifying their search for natural gas traders as Europe heads towards another potentially volatile winter, with tighter supplies and geopolitical risks creating a bigger opportunity set for energy-focused strategies, according to a report by eFinancial Careers.

The competition for experienced gas traders has become particularly intense, with leading hedge funds prepared to offer significantly greater earnings potential than traditional energy companies and trading houses.

Balyasny Asset Management has been among the firms expanding its natural gas capabilities. The hedge fund has hired Sayan Palchowdhury in New York from DRW, where he had been trading natural gas after beginning his career in the market at Goldman Sachs.

The move comes as Balyasny continues to build out its gas operation, including a European physical natural gas trading business established under Kristian Juncker in 2024. The firm has also recruited commodities specialists from Centrica’s energy trading operation.

DRW, meanwhile, has experienced a series of departures from its gas trading business. Recent exits include former US gas trading head Teoman Guler, European gas trading head Hayn Park, Michael Kennedy, Adam Findlay and Andrew Mugica, who moved to Millennium. Palchowdhury’s departure adds to the turnover.

Recruiters say the battle for experienced natural gas specialists has reached unusually high levels.

The compensation differential is helping drive the migration. Traders at energy merchants and utilities can typically receive around 15% and 10% of the profits they generate respectively, according to Gregory, compared with the potential for more than 20% at a hedge fund.

Recent moves have included Zach Millman, who has moved from BP via Millennium to Castletown Commodities, while Xing Yuan has joined ExodusPoint.